IMPORTERS MUST ACCOUNT FOR ORIGIN – SECTIONS 301 & 232 LIABILITY
U.S. Customs and Border Protection (CBP) recently ruled that importers must consider the country of origin of imported parts to account for potential Section 301 and Section 232 duties.
Importers “must apportion the assists provided to the foreign manufacturers for the specific product lines the assists were provided for to take into consideration the differing duty rates applicable to the imported merchandise.”
Customs Border Patrol Ruling Released March 27, 2023
CBP ruled similarly on previous issues including in 2021 when CBP ruled that importers “needed to apportion the assists provided to the foreign manufacturers for the specific product lines the assists were provided for to account for the differing duty rates applicable to the imported merchandise since some of the imported articles were subject to section 232 or section 301 duties, the accuracy of the value of the tooling assist added to the price actually paid or payable under transaction value could make a significant difference in the duties owed.” According to the March 2023 ruling, CBP finds that importers, “should be able to apportion each tooling assist to the product line or part level in which it is used.”
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